P f and esi celing

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Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2015 Dear expert,

we are giving gratuity as a part of CTC to our employees.
is Gratuity cover under ESI wage limit ?
(Means ESI calculate on Basic+HRA+TA+GRATUITY+Other allowance)

Please Help Me

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 January 2015 Gratuity will not be covered under ESI wage limit.

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2015 Sir,
Our company Hired Freshers, for this we are giving training for 6 months and also paying stipend.But we are not treating them as employees until they permanent, if we are not satisfy we send back them .

My question is, Is PF and ESI Payable on Stipend for these trainees?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 January 2015 Yes ESI and PF payable on stipend for these trainees.

ESIC has Amended its definition of employee by amendment dated 24 May 2010, applicable from 1 June 2010, as per this definition the trainee/appreantice engaged either under SO or Appreantice Act, they shall be covered by the ESI Act.

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